4 Biotech Stocks Under $10 Moving Higher

Acadia Pharmaceuticals

Acadia Pharmaceuticals (ACAD) is a biopharmaceutical company focused on small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders. This stock closed up 11.2% to $2.76 in recent trading.

Thursday's Range: $2.53-$2.83

52-Week Range: $0.93-$2.84

Volume: 3.2 million

Three-Month Average Volume: 868,275

Shares of ACAD skyrocketed higher after Roth Capital said a recent article in the journal Schizophrenia Research could increase use of ACAD's pimavanserin as an off-label schizophrenia treatment. The firm said the changes made to the current study of the drug compared with previous studies should cause it to yield better results.

From a technical perspective, ACAD exploded to the upside right around some near-term support at $2.40 with massive upside volume. This move has now pushed ACAD within range of triggering a major breakout trade. That trade will hit once ACAD manages to clear some near-term overhead resistance at $2.84 with high volume.

Traders should now look for long-biased trades in ACAD as long as it's trending above $2.53, and then once it sustains a move or close above $2.84 with volume that hits near or above 878,275 shares. If that breakout triggers soon, then ACAD will have an excellent chance of re-testing or possibly taking out its next major overhead resistance level at $3.30. If that $3.30 level gets taken out with volume, then this stock could easily spike north of $4 in the near future.

To see more stocks under-$10 that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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